Who is self-employed in DC
Consultants to federal agencies and the associations that surround them, often billing through a single-member LLC or an S-corp with the owner as sole employee. Small government contractors — an 8(a) or a two-person firm on a subcontract — whose payments arrive on the government's schedule. Attorneys and lobbyists in solo or two-partner practice. Communications, policy and data consultants who serve the nonprofit sector. Real estate agents working the rowhouse market. What they share is a personal return that understates the business, and a bank that qualifies off the return.
What is specific to a District file
- The District taxes the recording of a deed of trust. DC's recordation tax applies when a security instrument is recorded and is based on the amount secured. It is a District tax disclosed on the closing statement, not a lender fee.
- Rowhouses and condominiums are the standard case. A Capitol Hill or Petworth rowhouse is a fee-simple property like any other. A condominium file includes a look at the association's finances and reserves.
- Cooperatives are a different kind of ownership. A co-op share is not real property, and a lien-based line generally does not fit it. If your home is a co-op, say so first — it saves everyone a week.
- Historic districts change nothing on the loan. Preservation review affects what you can do to the façade, not whether the home is eligible.
- Valuation is strong. Dense sales data across the District means lines up to $400,000 typically close on an automated valuation without an appraiser visit.
The contractor payment pattern
Government contract income has a rhythm: invoices submitted monthly, paid on net-30 or later, occasionally delayed by a continuing resolution and then paid in a lump. A bank reading two years of returns sees the write-offs and a low net figure. Twelve months of deposits show the invoices landing — including the catch-up months — and that is the income on this file. Nothing about the contract vehicle, the NAICS code or the set-aside status matters; the deposits do.
Common questions
Does DC's recordation tax apply to a home equity line?
Yes — recording the deed of trust triggers it, based on the amount secured. It is a District tax on the closing statement, not a lender charge.
My home is a co-op in Dupont Circle. Can I get this line?
Generally no. A co-op share is not real property, so a lien-based line does not fit it. A condominium or rowhouse is the straightforward case.
A continuing resolution delayed my invoices for two months last year. Does that hurt me?
Twelve months of deposits show the delay and the catch-up in context. No single slow month decides the file.
Are you located in DC?
No. Korbin Spangenthal is licensed in the District and originates from Fort Lauderdale; the process is electronic from application to closing.